The New York Times Earnings: Here’s Why Investors are Happy Now

The New York Times Company (NYSE:NYT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 12%.

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The New York Times Company Earnings Cheat Sheet

Results: Net income came in at 32 cents per diluted share in the quarter versus a net gain of $0.34 in the year-earlier quarter.

Revenue: Decreased 10.45% to $575.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The New York Times Company reported adjusted net income of 32 cents per share. By that measure, the company beat the mean analyst estimate of $0.31. It beat the average revenue estimate of $570.42 million.

Quoting Management: ”2012 showed both the opportunities and challenges we face as a company,” said Mark Thompson, president and chief executive officer. “We saw continued strong growth in digital subscriptions as well as increased revenue from our large print circulation base. Indeed, for the first time in our history, annual circulation revenues surpassed those from advertising. Our pay model continued to prove itself, with approximately 668,000 paid digital subscriptions across the Company at quarter end, up 13 percent from the end of the third quarter.”

Key Stats (on next page)…

Revenue increased 28.23% from $449.03 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.06 to a profit $0.05. For the current year, the average estimate has moved down from a profit of $0.53 to a profit of $0.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)